Longhorn Network still working to hook distribution deals

AUSTIN — Eight months after its debut, the fledgling Longhorn Network is trying to get some momentum, hammer out distribution deals and manage the frustrations of some of the most ardent fans in college football.

So far, it’s been tough.

The ESPN-owned, University of Texas-centric Longhorn Network is still not able to answer the question that is most annoying UT sports fans: When will they be able to see the network on their cable systems?

The network has attained sparse distribution, most notably on Grande Communications Networks LLC and Verizon Communications Inc.’s FiOS, as well as some smaller carriers. It can be seen in limited distribution within the state and in some markets outside Texas. But it has not reached deals with Texas’ major providers: Time Warner Cable Inc., Comcast Corp., Charter Communications Inc., AT&T Inc.’s U-verse, DirecTV Inc. and Dish Network Corp.

“I know there’s frustration because there are people in New York, (Los Angeles) and (Washington,) D.C. that can watch us, and the people here are starving for it a little bit,” says Stephanie Druley, vice president of production for the Longhorn Network.

The network’s top priority is to get distribution deals done, says Druley, who hinted that such negotiations are starting to make headway while stating that she is not privy to them.

Nevertheless, it may still be a while before those negotiations yield agreements. The Texas Longhorn football team starts its season in four months.

Talks between Time Warner — the main cable providers for San Antonio and Austin — and the network appear to have come to a standstill.

“We had discussions with the Longhorn Network and we did not come to an agreement on terms for a contract that would allow Time Warner Cable to distribute the network,” says Ryan Kelly, communications manager for Time Warner. “At this time, there aren’t plans to carry the Longhorn Network.”

Network maturing

Despite its inauspicious beginnings, ESPN appears to be invested in the Longhorn Network, which is occupying an entire floor in the University Park tower off I-35. The network is operating primarily out of temporary space in the same building as it waits for its floor to be built out. The office boasts views of the stadium and UT clock tower.

The network has about 43 staffers, many of whom moved to Austin for their jobs. The office is led by Druley and Dave Brown, who is vice president of programming. Its sales are handled by sports marketing giant IMG College, and the office has two marketing professionals on staff. The network contracts with Earl Miller Productions Inc., which has a long-standing relationship with UT, for its technical crews.

Meanwhile, the Longhorn Network is touting its talent behind and in front of the camera as being top-notch and is creating programming that highlights multiple sports, including swimming, baseball and basketball, in an in-depth way that football has typically been covered.

The network has third-tier rights to broadcast UT football games, and there were many multiyear agreements in place that give other networks exclusive rights to certain games. As a result, it expects to have the right to show an average of two football games a season.

Brand concerns

Regardless of what the network is showing, some believe its inability to achieve wide distribution can tarnish the Longhorn brand.

“It’s harming the brand by keeping the fans from their team,” says M.P. Mueller, president of Door Number 3, an Austin advertising and branding agency.

“I attended most every UT home football game this past fall, and when the announcer did the live promo for the Longhorn Sports Network, it was consistently and roundly booed,” Mueller says.

Mueller pointed out that fans have been denied baseball and softball games that they might have seen had those games not been exclusive to the Longhorn Network. Meanwhile, many fans blame the unraveling of the Big 12 on the creation of the Longhorn Network. The PAC 12 does not allow its members to have their own networks.

At the same time, Mueller sees an opportunity for the network to succeed.

“If (ESPN) and the cable channels can get the Longhorn network going on basic cable, it will be a big money winner. But that seems like a big if,” Mueller says.

UT President Bill Powers doesn’t believe the lack of wider distribution is hurting UT’s image. Powers says that beyond showcasing athletics, the network also is putting the spotlight on faculty, students and their work.

Under the $300 million, multiyear agreement between ESPN and UT, the network funnels about $5 million a year toward academics. Earnings from the network are being used to establish endowed professorships and faculty chairs.

“We’d like to get more distribution, and that takes time. These are strong negotiations for a long-term deal,” he says, adding that ESPN is taking the lead in the negotiations but the university is willing to help if needed. “ESPN knows how to do this.”

Sandra Zaragoza is a staff writer for the Austin Business Journal, a sister publication.